Switzerland’s Bell Food Group has reported that its sales revenue went up by 18.9% to CHF 2.1 billion (€1.9 billion), in the first half of 2018, when compared with CHF 1.8 billion (€1.6 billion) in the same period in 2017.
Sales volumes increased by 19.9% to 268.3 million kilograms.
The company's growth has been attributed to the acquisitions of Hügli and Sylvain & CO on 1 January 2018.
EBITDA for the first half of 2018 was CHF 6.6 million, 5.1% higher than in 2017.
However, the half-yearly profit dropped 17.7% to CHF 32.5 million from CHF 39.5 million last year.
The company has said that the primary reasons behind the decline in profits was because the growth posted was associated with product ranges offering smaller margins in Switzerland, and with the poultry business of Bell International.
Divisional Growth
The company's Swiss division, Bell Switzerland posted a 1.3% increase in sales volume, and a 3.4% growth in sales revenue in the first half of 2018. Most of the growth took place in the second quarter of 2018 across product ranges and distribution channels that offered smaller margins.
Bell Germany's sales volume increased by 10% to 37.3 million kilograms (+3.4 million kg) with targeted sales promotion measures. Sales revenue improved by CHF 38.1 million (+17.7%) to CHF 253.1 million.
The food company's international arm, Bell International, reported a 2.8% increase in sales volume, while sales revenue improved by CHF 36.1 million (+12.3%) to CHF 328.9 million.
Outlook
In the second half of 2018, the company will focus on expanding its market position in the convenience segment.
The company has reported that the reorganisation measures at Bell Germany and Bell France got off to a good start and will continue in the second half of 2018.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
